This is not a good sign. Microsoft the largest $10Bn investor, who is in the middle of pushing through the restructuring of the company, hasn't decided if they want board representation? The only reason you would do that if they want to keep their options open, in the future, to hit OpenAI hard (legally and/or to raid the personnel).
Board representation would come with a fiduciary responsibility and it looks like they may not want that. I could only imagine the intensity of Microsoft senior engineers screaming that they could replicate all of this in-house (not saying whether it's justified or not).